net profits

Compensation to an officer for his services constitutes a part of operating expenses deductible from earnings in order to ascertain net profits. It is immaterial whether such compensation is a fixed salary or depends in whole or in part upon earnings.

This term does not mean what is made over the losses, expenses, and interest on the amount invested; it includes es of the business. Tutt v. Land, 50 Ga. 350. See Park v. Locomotive Works, 40 N. J. Eq. 114, 3 Atl. 162. See Profits.

Theoretically nil profits are "net." But as the expression "gross profits" is sometimes used to describe the mere excess of present value over former value, or of returns from sales over prime cost, the phrase "net profits" is appropriate to describe the gain which remains after the further deduction of all expenses, charges, costs, allowance for depreciation, etc.

Defined under Profits in Black's Law Dictionary.

This term does not mean what is made over the losses, expenses, and interest on the amount invested. It includes the gain that acerues on the investment, after deducting simply the losses and 9axpenses of the business. 50 Ga. 350.